Vic Govt won't take over bypass project

The Victorian Government has ruled out taking over the management of a proposed bypass around Colac.

The Colac Otway Council voted last week to defer any decision about how to proceed with the road after the Government informed it VicRoads has some problems with the plan.

Roads Minister Terry Mulder says the council needs to get legal advice on how it can proceed.

However, he says the Government has other priorities for Colac.

"Certainly at this particular time it isn't a VicRoads' led project because my major concern and my major commitment is to get the Princes Highway duplicated between Winchelsea and Colac, and between federal and state that's about a $500 million project," he said.